Business | Tue Apr 26, 2016 1:09pm EDT

House Democrats question if Valeant is wrongfully withholding records

WASHINGTON | BY SARAH N. LYNCH

Democrats on a powerful U.S. congressional panel are questioning whether Canada-based Valeant Pharmaceuticals may be wrongfully withholding documents in connection with its ongoing probe into sky-rocketing drug prices, according to an internal memo seen by Reuters on Tuesday.

The memo, which was sent to Democratic members of the House of Representatives Committee on Oversight and Government Reform from the staff of its top Democrat Elijah Cummings, reveals that Valeant previously withheld readily available analyst reports prepared by banks such as Goldman Sachs, saying they were protected by attorney-client privilege.

The memo says it also raises questions about other documents that are still being withheld, saying some of these "were not drafted by attorneys and do not include communications with attorneys."

A spokesperson for Valeant did not immediately respond to a request for comment.

The April 26 memo comes just one day before three of Valeant's top executives are slated to appear before a different U.S. Senate panel that is also investigating high drug prices.

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